Onlive or online???

The recent announcement of Onlive has brought forth such comments as the console killer and I am not the first to say this is not true. For those who don't know, Onlive is a new video game system where the games will be in a huge server room and all someone needs to play is the little box and a computer or tv. This is a great concept in theory but in practice...not so much. What about the people who have a terrible connection and lag on even the simplest game? Beaming an entire game in real time is a task that no technology is up to the standard of at this point in time. It takes about 7 hours for me to download a game demo or xbox original, how do they expect for the computer to download the live information for the game, then send the desired action to the server, send it back to the screen telling it what to do, then send the signal over the internet for an online game, in the under a millisecond? I can see the video game industry moving towards all digital distibution which is fine, asseuming they provide the amount of memory required for such a task as to hold 30+ games as well as the save game in the case of a hardcore gamer. Downloading these games would take a long time with a bad connection and good connections can be very pricey and hard to get. Now it is not only about buying the console and the games but a good connection will create an overall better experience. This should be a concept and not a reality at this point in time. With the advances in technology we don't know where the industry will go next. Nvidea (i suck at spelling) has even created a 3-D card to be used with pc games, is this the future or a gimik only time will tell on the card as well as onlive.